Circular 2/06: Club Condition Surveys

The Clubs in the International Group have adopted a common scope, and common triggers, for P&I condition surveys, consistent with the UK Club's existing condition survey programme.

However, one additional factor that Clubs have agreed to take into account in deciding which ships to target for a condition survey, is carriage of heavy fuel oil (HFO) as cargo in ships that are 10 years old or more.

Members will be asked to declare, early in the 2006 policy year, which of their ships of this age have carried HFO as cargo during the 2005 policy year, subject to certain exceptions.

ACTION

Ascertain which of your ships aged 10 years or more have carried HFO as cargo during the 2005 policy year, so that the information may be passed to your usual Club contact in the new policy year.

TO TANKER MEMBERS

Dear Sirs

CLUB CONDITION SURVEYS

Members may be aware that a number of initiatives have been proposed by the International Group of P&I Clubs to contribute to the general drive within the marine industry to eliminate sub-standard shipping.

One of these relates to a minimum scope of information that is included in club condition surveys and to an agreement amongst clubs regarding the use of common survey triggers. The condition survey used by the UK Club already complies with the minimum scope of information and the Club has also operated for many years most of the survey triggers that have been agreed. However, there is one new survey trigger that we need to introduce. The Group has agreed in respect of seagoing tankers aged 10 years or more that they should be surveyed if they have carried heavy fuel oil (HFO) as cargo in the previous 12 months, unless:

the ship has undergone a Club condition survey during the previous 12 months; or

the ship has undergone a class Special Survey during the previous 6 months; or

the ship has a current CAP 1 or CAP 2 status with an IACS classification society.

Members will be asked to make a declaration following the February 2006 renewal as to which tankers aged 10 years or more in their fleet carried HFO as cargo during the previous 12 months, i.e. between 20 February 2005 and 20 February 2006. A similar declaration will be requested annually.

In order to be in a position to make such a declaration early in the 2006 policy year, we would be grateful if Members could collate the information required - limited to a simple list of the names of the entered ships in your fleet that carried HFO as cargo during the 2005 policy year, excluding those that are less than 10 years old, or that are subject to the exceptions noted above.

If a ship continues to carry HFO as cargo over a period of successive years, the Club will not be obliged to carry out a survey every year but in that event a survey would be held at least every 3 years after the first survey has taken place. It is at the Club's discretion whether to undertake surveys on a more frequent basis.

The definition of HFO to be used for the purpose of this annual declaration is as follows:

'A residual fuel with a kinematic viscosity of 380 centipoise or greater when measured at 50 degrees Celsius by Test Method ISO 3104.'

This definition is intended to exclude Intermediate Fuel Oils or Heavy Crudes, as well as bitumen or tar.

We will remind members after the renewal to submit their declarations early in the new policy year.

Yours faithfully

THOMAS MILLER (BERMUDA) LTD.

Contact

Members are recommended to contact their usual Club contact if they require further information.